iot: what’s hot, what’s not & what’s next€¦ · 3 process automation source: idc ww iot...
TRANSCRIPT
IoT: What’s Hot, What’s Not & What’s Next
Charles Reed AndersonVice President
Head of Mobility & Internet of ThingsIDC Asia Pacific
@CRASingapore
sg.linkedin.com/in/charlesreedanderson
Connected“Things”
Market Opportunity
@CRASingapore
2020: IoT in APeJ
Source: IDC Internet of Things Spending Guide, 2016
Connected“Things”
Market Opportunity
2020: IoT in India
@CRASingaporeSource: IDC Internet of Things Spending Guide, 2016
0.8 1.6 1.9 2.0 2.6 2.8 3.14.1
5.26.9
8.4
11.2 11.7
IN PH VT ID HK TH MY PRC TW SG NZ SK AU
IoT Market Maturity in 2020IoT Units/Capita
@CRASingapore
Source: IDC Asia/Pacific Internet of Things Practice
@CRASingapore
2015: The Year in Review
Step 1The Stakeholders
Step 2The Future Vision
Funding
Platforms
Planning
Steps 3 - ???The Gap
Delivery
@CRASingapore
Source: IDC Asia/Pacific Internet of Things Practice
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2015: Less Hype, More Practicality
Source: IDC Asia/Pacific Internet of Things Practice
@CRASingapore
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What’s HOT
@CRASingapore
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Below the Surface Innovation
What the public sees
What is being delivered
#1
@CRASingapore
Asset Tracking
Road Tolls
Traffic Monitoring
Connected Cars
Predictive Analytics
Digital Signage
Weather & Environmental Sensors
Wearables
Smart LightingSmart Building
Intelligent Routing
Security
IoT is Everywhere
Connected Streetlights
@CRASingapore
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1 Increase productivity
5 Faster/better decision making
4 Reduce costs
2 Improve product quality/time to market
3 Process automation
Source: IDC WW IoT Survey, Sep 2015: AP=840
IoT Market Drivers
@CRASingapore
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Operational Excellence
of APeJ enterprises will see IoT as an opportunity for revenue generation in 2016
Source: IDC WW IoT Survey, Sep 2015: AP=840; IDC Internet of Things Spending Guide, 2016@CRASingapore
Top Use Cases
1. Manufacturing Ops
2. Freight Monitoring
3. Production Asset Mgmt
4. Smart Grids
5. Smart Buildings
Top 5 IoT Use Cases - APeJ
Source: IDC Internet of Things Spending Guide, 2016
1. Manufacturing Ops
2. Omni-channel Operations
3. Smart Homes
4. Smart Buildings
5. Production Asset Mgmt
Top 5 IoT Use Cases - INDIA
@CRASingapore
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plan to take their IoT initiatives international
Source: IDC WW IoT Survey, Sep 2015: AP=840
of APeJ IoT initiatives were internationally-focused in 2015
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of Asian-based MNC will integrate IT & OT at the technology, process, security and organizational levels by 2018
Bridging the IT/OT Divide#2
@CRASingaporeSource: IDC Futurescape: 2016 Internet of Things Predictions
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IT & OT must address the same challenges
Source: IDC WW IoT Survey, Sep 2015: WW=1971 AP=840 AU=135 CH=236 IN=135 SG=126 KR=124 @CRASingapore
Impact of IT/OT Convergence
Less silos
Cost efficiency
Increased skills gap
New roles (e.g. Chief Digital Officer)
Vendors must partner to bridge the IT/OT divide@CRASingapore
68%
32%
Worldwide
58%42%
India
72%
28%
Asia/Pacific
32%
68%
Australia
84%
16%
China
46%54%
Singapore
63%37%
South Korea
Who Holds the IoT Budget?
IT
Line of Business
Source: IDC WW IoT Survey, Sep 2015: WW=1971 AP=840 AU=135 CH=236 IN=135 SG=126 KR=124
@CRASingapore
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0%
20%
40%
60%
80%
100%
Total WW AP Australia China India Singapore South Korea
Which group drove the IoT solution decision?
Internal – IT Internal – Business unit(s)
Internal – New business created for IoT External (e.g. customers, partners, vendors)
The New Decision Makers
Source: IDC WW IoT Survey, Sep 2015: WW=1971 AP=840 AU=135 CH=236 IN=135 SG=126 KR=124
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What’s NOT
@CRASingapore
Devices Value#1
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Missed Earnings Forecast:
shares drop 20%
Launched Blaze Smartwatch at CES:
shares drop 30%
The Risk of a “Me Too” Solution
The stock market demands more…
Source: Google Finance, IDC Asia/Pacific Internet of Things Practice
and the consumer demands more@CRASingapore
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China has 4,000+ smart device startups
of these vendors will be eliminated through competition by 2018
Source: IDC Futurescape: 2016 Internet of Things Predictions@CRASingapore
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The Next Wave of Wearables
@CRASingapore
Solutions with the potential to transform industries
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Conventional Thinking
@CRASingapore
#2
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“We are solving yesterday’s tasks with tomorrow’s
technology”
Scott Jenson, Google
@CRASingapore
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There’s too much Tech for Tech’s sake! @CRASingapore
28@CRASingapore@CRASingapore
If I’d asked my customers what they’d wanted, they’d have said a faster horse.
Henry Ford
@CRASingapore
Technology Transforms the Process
Source: IDC Asia/Pacific Internet of Things Practice, 2015@CRASingapore
Leverage Wearables for…
Predictive Maintenance
Time Tracking
Health & Safety
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Technology Transforms the Bus Model
Mobile App
Subscription Model
Usage-based Insurance
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Technology Transforms the CX
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A different approach changes the discussion
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What’s NEXT@CRASingapore
IoT at the Edge
of APeJ IoT-created data will be stored, analyzed & acted upon at the “edge” of the network by 2019
#1#1
Source: IDC Futurescape: 2016 Internet of Things Predictions @CRASingapore
What do you mean by “the edge”?
Lower cost
More agile
Fast process
Higher cost
Less agile
Slow processSource: IDC Asia/Pacific Internet of Things Practice @CRASingapore
IoT at the Edge in a City
Vehicle to Vehicle
Telco Sites
CCTV
Intelligent RoutingConnected Cars
Environmental Sensors
Digital Signage
Water Infrastructure Mgmt
@CRASingapore
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Low Power WANs#2
@CRASingapore
High Bandwidth Solutions
The Low Bandwidth Solution-enabler
Low Bandwidth Solutions
Source: IDC Asia/Pacific Internet of Things Practice @CRASingapore
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The Improved Business Case
19% 9% 55% 17%
0% 20% 40% 60% 80% 100%
Smart Meter Costs – SIM-based SolutionConnectity
Hardware
Software
Services
2015SIM-based solutions
$12 - $60 per year
FutureLow Power WAN solutions
$1 - $12 per year*
+ potential to reduce hardware, software & services costs
* Anticipated pricing levels @CRASingapore
...but first the ecosystem must evolve
Source: IDC Asia/Pacific Internet of Things Practice @CRASingapore
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HOT #1 Below the Surface Innovation
#2 Bridging the IT/OT Divide
NOT #1 More Devices, Less Value
#2 Conventional Thinking
NEXT
#1 IoT at the Edge
#2 Low Power, Wide Area NetworksSource: IDC Asia/Pacific Internet of Things Practice @CRASingapore
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IoT is a journey…
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For IoTto take-off, we need to change our perspective
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Charles Reed AndersonVice President, Head of Mobility & Internet of Things, IDC Asia Pacific
@CRASingapore
sg.linkedin.com/in/charlesreedanderson